Real confirmed on its website that the two clubs "have reached an agreement on the transfer" of Huntelaar to Milan.

Earlier on Thursday Gazzetta dello Sport newspaper claimed Milan will pay 15 million euros for the Dutchman who would be given a contract until 2013 with an annual net salary of three million euros.

Huntelaar, who will turn 26 years old on August 12, finished as the Dutch league's top scorer with 33 goals in 2007-2008 when he played for Amsterdam giants Ajax.

He then moved to Real on a four-and-a-half-year deal in December 2008 for a fee of 27 million euros but since then he has played only 19 matches for a return of eight goals.

Last month Huntelaar tried in vain to get out of his contract with Real in a bid to join Stuttgart in Germany's Bundesliga.

It now appears he could resurrect his career, if given the chance, at the side owned by Italian Prime Minister Silvio Berlusconi.

The Serie A club have been quiet on the transfer market this summer but Berlusconi said Wednesday this is about to change.

"The club have freed up funds and commissioned (club vice-president) Adriano Galliani to purchase a top striker," Berlusconi told a press conference at the club's Milanello base.

"The names (of the strikers) you already know," he said.

The club lost their best forward with the sale of Brazilian Kaka to Real Madrid. But reports from Italy claim the club are chasing Brazilian Luis Fabiano (Sevilla), Huntelaar and Peruvian Claudio Pizarro (Chelsea).

AC Milan's current strikers include Brazilians Ronaldinho and Pato and Italians Filippo Inzaghi and Marco Borriello.